A VC investor (VC) enters a company at the P0/E0-multiple (P/E=price/Earnings per share, at time...
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A VC investor (VC) enters a company at the P0/E0-multiple (P/E=price/Earnings per share, at time 0) of 10 when E0=EPS0 is 0,75/share. Earnings are projected to grow by 10% p.a. and 70% of EPS are re-invested annually. VC expects to be able to exit at P5/E5-multiple of 15. What would be the annual IRR for VC?
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